ECN LIquidity...

Discussion in 'Trading' started by nxsux, Aug 31, 2006.

  1. nxsux


    I've just started to trade the ECN's (arca mostly) and am very curious about how charges work. I'm under the belief that if you add liquidity/ or have your order hit... you get some of the commission back. And if you hit someone elses bid/offer, then you pay a little extra. Does anyone know the facts of this or where to find it? i'm not sure if i'm being overcharged or not. Thanks.
  2. yes most of the ecn's including arca and inet are charing 0.003 to take liquidity and giving a rebate of .002 for adding liquidity. but if you do arca market many times you get charged an extra .001 if they reroute your order and it's filled outside the book. so lets says your base commission is .005 and you're doing market orders in and out of naz stocks. your commission would be .008 to .009 per share on arca plus sec fee which is another .001 at least. so all of a sudden your at a penny a share which is alot of freight to overcome if your a high vol trader